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If a $15/hr wage is apparently a pay decrease for these "peasants" then they were previously making a very livable wage. So what exactly is Amazon doing that ev

If a $15/hr wage is apparently a pay decrease for these "peasants" then they were previously making a very livable wage. So what exactly is Amazon doing that every local cafe or retail store isn't?

downrightmike 8y ago
It was livable because they'd get 2 shares of amazon stock, worth about a 10% boost to their earnings per year and in non holiday seasons, they could make an additional 8% on performance, with that doubling in the holiday seasons. So instead of making an additional 18% to 26%, the bump to long term workers is as stated in the article from $14 to $15, where the previous performance program in the off season was $1.28, before the extra 10% from the stock grant. So amazon just saved ~20% on this holiday's logistics costs.
- philwelch 8y ago
  If you give performance bonuses and people work too hard to meet them people complain about work conditions, and if you just pay everyone more instead, people complain that you took away the performance bonuses.
  - coldtea 8y ago
    And they are right in both cases. How about having regular wages for regular work AND performance bonuses to reward great performance (what they're meant to be)? As opposed to low wages for regular work, thus making performance "bonuses" a necessity (and thus using them to force people to overworking) OR having regular wages and not compensating those working more. If I pay you $8/hour, and have "performance bonus" of $16 for those who work their asses off, people will be forced to work 2-3 hours more per day to get those just to get by. If I then start paying you $10/hour and drop the bonuses, those working regular hours would be ok, but others who are still made to work overtime would still like to be compensated extra for what they do. They might still make the same as before, but now their colleagues who go off a 8 hours or have lower performance get the same too. So what's to compensate for their extra effort? That's what performance bonuses are about, to compensate for extra effort.
coldtea 8y ago
Nothing, ain't life grande? They got from barely "livable" after working to the bone (and not being able to take bathroom breaks) to almost "livable" with caveats elsewhere. The magnanimity of Amazon (and the local cafe -- who at least allows tips and is less mind numbing) is truly great. Besides they could always just starve so this is clearly better.

If a $15/hr wage is apparently a pay decrease for these "peasants" then they were previously making a very livable wage. So what exactly is Amazon doing that every local cafe or retail store isn't?

downrightmike 8y ago

It was livable because they'd get 2 shares of amazon stock, worth about a 10% boost to their earnings per year and in non holiday seasons, they could make an additional 8% on performance, with that doubling in the holiday seasons. So instead of making an additional 18% to 26%, the bump to long term workers is as stated in the article from $14 to $15, where the previous performance program in the off season was $1.28, before the extra 10% from the stock grant. So amazon just saved ~20% on this holiday's logistics costs.

philwelch 8y ago
If you give performance bonuses and people work too hard to meet them people complain about work conditions, and if you just pay everyone more instead, people complain that you took away the performance bonuses.
- coldtea 8y ago
  And they are right in both cases. How about having regular wages for regular work AND performance bonuses to reward great performance (what they're meant to be)? As opposed to low wages for regular work, thus making performance "bonuses" a necessity (and thus using them to force people to overworking) OR having regular wages and not compensating those working more. If I pay you $8/hour, and have "performance bonus" of $16 for those who work their asses off, people will be forced to work 2-3 hours more per day to get those just to get by. If I then start paying you $10/hour and drop the bonuses, those working regular hours would be ok, but others who are still made to work overtime would still like to be compensated extra for what they do. They might still make the same as before, but now their colleagues who go off a 8 hours or have lower performance get the same too. So what's to compensate for their extra effort? That's what performance bonuses are about, to compensate for extra effort.

coldtea 8y ago

Nothing, ain't life grande? They got from barely "livable" after working to the bone (and not being able to take bathroom breaks) to almost "livable" with caveats elsewhere. The magnanimity of Amazon (and the local cafe -- who at least allows tips and is less mind numbing) is truly great. Besides they could always just starve so this is clearly better.